The Special MPID (Maharashtra Protection of Interest of Depositors) Court on Thursday included Nirmal Jain, the director of India Infoline Commodities, Preeti Gupta, the director of Anand Rathi Commodities and Shiney George, director of Geojit Comtrade as accused in the National Spot Exchange payment default crisis.
Besides, Roop Kishor Bhootra, the director of ARCL, Anand Rathi Commodities and Manish Gupta, the director of Geojit Comtrade, have also been made accused in the NSEL case by the Court.
In an application, NSEL had requested Special MPID Court to take cognizance and issue process against the directors and promoters of the three commodities broking entities in view of the statutory mandate of Section 3 of the MPID Act.
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The Special MPID Court in its order said considering the documents put forth it would prima facia indicate that main promoter and director of broker companies are kept out of chargesheet by investigating officer, despite the statutory mandate of Section 3 of MPID Act without providing cogent reasons while similarly placed persons have been arrayed as an accused.
“The statements of witnesses referred as above, would primafacia indicate that brokers had misrepresented investors about high returns and induced them to trade on NSEL platform,” it said.
The total accused so far in NSEL case was 220 in 11 chargesheets that has been filed by the EOW.
Last year, SEBI had declared India Infoline Commodities, Anand Rathi Commodities, Motilal Oswal Commodities, Geojit Comtrade and Philip Commodities as Not Fit and Proper persons and cancelled their application for registration as intermediaries.